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Bloodwood Creek, Australia

Carbon Energy's 5MW Power Station at Bloodwood Creek, Queensland

Bloodwood Creek is the pilot site for Carbon Energy’s first trial to commercialise its proprietary Underground Coal Gasification (UCG) keyseam® technology. Site selection and geological modelling assessment were used to select the location for the trial site which also meets the Company’s resource requirements and economic evaluation. In addition, its location away from prime agricultural land and well clear of good quality aquifers meet Carbon Energy's environmental and social responsibility criteria.

Milestones:
In September 2011, Carbon Energy successfully demonstrated a core component of the Company’s keyseam UCG technology by proving automation of its Controlled Retractable Injection Point (CRIP). Typically UCG relies on manual intervention which interferes with gas quality and consistency affecting downstream processing. Carbon Energy’s automated CRIP is a major breakthrough in UCG development making Carbon Energy’s syngas ideal for the entire suite of end uses including the production of fertilisers, explosives, synthetic natural gas, electricity and liquid fuels.

In February 2012, Carbon Energy became the first Australian company to export power generated by syngas into a commercial electricity grid from its UCG facility at Bloodwood Creek. The Company successfully exported electricity to Ergon Energy Corporation Ltd’s local electricity grid, up to the limit of 1.5MW/as permitted under the Environmental Authority.

In March 2012, the Company achieved Proof of Concept for its keyseam technology through the operational lifecycle from panel construction and gasification through to the export of electricity. In achieving Proof of Concept the Company demonstrated (see ASX Announcement):

  • Drilling and construction of Carbon Energy's unique panel design
  • Ignition and commissioning of two UCG panels
  • 12 months continuous syngas production from panel 2
  • Consistent production of high quality syngas
  • Validation of gasification prediction models with operational data
  • Validation that adjacent panels can operate independently
  • Management of ground water during operations
In the same month, the Company announced that as an outcome of our strategic review, costs at the project site would be reduced until a full-scale commercial agreement with a partner was reached and regulatory certainty achieved.

On 23 October 2012, Carbon Energy ceased all gasification at the trial site as a prerequisite for the decommissioning phase. The project had accomplished several achievements, with more than 18 months of consistent, high quality syngas. Additionally, the gas heating value had been consistently in the range of 6.0 to 7.5MJ/m³. Importantly this energy content is the highest quality UCG gas, being consistently produced anywhere in the world.

In the last Quarter of 2014 the Company completed a site Decommissioning Report and a Rehabilitation in-line with the recommendations of the Queensland Government appointed Independent Scientific Panel (ISP).  The Government advised that all recommendations had successfully been completed.
 
Results of the Decommissioning Report and Rehabilitation Plan have been published widely. The key findings from the Company’s Bloodwood Creek pilot project include:
Operations were safe and effective.
The process was highly controlled.
No material impact on regional ground water.
 
Carbon Energy is committed to maintaining the highest environmental standards while demonstrating the on-going rehabilitation process at Bloodwood Creek.